asmara joint venture - announcement

ABN: 16 061 104 158
288 Stirling Street, Perth
Western Australia 6000
PO Box 8260
Perth Business Centre
Western Australia 6849
Telephone (+618) 9227 3260
Facsimile (+618) 9227 3271
Email:
[email protected]
Web: www.subsahara.com.au
SUB-SAHARA R E S O U R C E S NL
ASX Announcements
Asmara Joint Venture
Joint Venture Partner Sunridge Gold Corp
forges strategic alliance and enters financing agreement
Joint Venture partner in the Eritrean Asmara Joint Venture, Sunridge Gold Corp
(Sunridge) has announced that it has entered a strategic alliance with fellow TSX
company, Lundin Mining Corporation (Lundin).
Lundin has entered into a financing arrangement that will see it take just under 10% of
Sunridge by agreeing to subscribe for 3,150,000 shares in Sunridge at a price of C$1.66
per share. Each share carries a warrant with an exercise price of C$2.07 and may be
exercised at any time within 24 months of closing of the arrangement. Sunridge has
agreed to appoint two Lundin representatives to the board.
Lundin has a number of international mining projects with its focus on base metals. In
Lundin Mining’s announcement to the TSX , Karl-Alex Waplan, President of Lundin
Mining, commented,” The Asmara projects represent an excellent low-risk opportunity
to participate in the exploration and advancement of some of the most exciting VMS
prospects I’ve seen in some time – not since our own Storliden high grade VMS project.
The grades seen at the Sunridge projects are highly impressive. We look forward to
working with Sunridge and being with them as they enjoy continued success.” (The
projects referred to are the projects within the Asmara Joint Venture of which Sub-Sahara
currently holds 48%. Sunridge holds 40% and is funding exploration through to completion
of Bankable Feasibility Study to earn a further 30% of Sub-Sahara’s interest).
For further particulars of Lundin Mining Corporation visit www.lundinmining.com
Sunridge’s Lundin deal follows its notice of exercise of the Asmara Joint Venture
Purchase Option announced to the ASX by Sub-Sahara Resources NL on 16 January
2006. Sunridge shares closed on Monday 16 January 06 at C$2.60 per share on a volume
of 582,823 shares and its market capitalisation was reported as C$74,194,351. For
further particulars of Sunridge visit www.sunridgegold.com
For and on behalf of
Sub-Sahara Resources NL
Peter Munachen
Director – Finance and Corporate
17 January 2006